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Infosys has escalated its legal battle with Cognizant TriZetto Software Group by filing antitrust counterclaims in response to a Texas federal lawsuit accusing Infosys of misusing proprietary system access to develop competing healthcare software services. Infosys alleges Cognizant has engaged in monopolistic practices to stifle competition in the healthcare IT market.

Central Issue: Restrictive Access Agreements

At the center of the dispute are nondisclosure and access agreements (NDAAs) that Infosys signed to service clients using Cognizant’s TriZetto systems. Cognizant’s lawsuit, filed in August, claims Infosys breached those agreements and misused proprietary information to develop its Infosys Helix platform.

Infosys counters that these NDAAs form the backbone of Cognizant's alleged monopolistic conduct. According to Infosys, Cognizant uses contractual restrictions to block competitors from developing complementary products, providing training, or freely operating in the market, forcing payors—such as hospitals and insurers—to overpay for outdated software like TriZetto's Facets and QNXT systems.

“Cognizant has imposed restrictive obligations with no legitimate purpose,” Infosys stated. “These practices deprive customers of competition, resulting in higher prices and limited innovation in the U.S. healthcare system.”

Allegations of Monopolistic Behavior

Infosys’s counterclaims, filed Thursday, accuse Cognizant of leveraging its market dominance and contractual provisions, such as "most-favored vendor" clauses and exclusive agreements, to exclude competitors. Infosys argues that Cognizant’s actions violated Texas antitrust laws and restrained trade by:

• Limiting third-party participation in product training programs.
• Imposing one-sided non-solicitation agreements.
• Restricting the scope of work that competitors could perform for payors.
• Preventing the development of software products that could interface with Cognizant’s systems.

Infosys claims these practices forced healthcare payors covering 65% of insured Americans to rely on costly, outdated systems, causing significant harm to competition and driving up expenses.

Infosys Accuses Cognizant of Sabotaging Innovation

Infosys further alleges that Cognizant recruited high-ranking Infosys executives, including former Infosys President Ravi Kumar S., to sabotage the development of the Infosys Helix platform. Kumar, who joined Cognizant as CEO in October 2022, allegedly delayed Helix’s progress during his tenure at Infosys, setting the project back by 18 months.

“Discovery will reveal the extent to which Cognizant and these executives used Infosys’s confidential or trade secret information to benefit Cognizant and undermine Helix,” the counterclaim states.

Cognizant’s Original Suit

Cognizant’s lawsuit against Infosys alleges violations of the Defend Trade Secrets Act, Texas Uniform Trade Secret Act, and the Lanham Act. Cognizant claims Infosys abused its NDAA access to develop competing software, seeking damages, restitution, and an injunction to prevent further misuse of its intellectual property.

Cognizant has dismissed Infosys’s counterclaims as baseless, stating: “Cognizant encourages competition, but competitors cannot use Cognizant’s IP to unfairly compete.”

Legal Implications and Industry Impact

The case highlights tensions between competition and intellectual property protection in the healthcare IT industry. If Infosys successfully proves antitrust violations, it could set a precedent limiting how dominant players use access agreements to restrict competitors. Conversely, a win for Cognizant could reaffirm the enforceability of NDAAs as a safeguard for proprietary systems.